AN IMPORTANT DISCOVERY.

Otago Witness, Issue 2525, 6 August 1902, Page 25

AN IMPORTANT DISCOVERY.

IK".. STRIKING OF A REEF (From Oca Own Cor-respondfnt.) GRKYMOUTH, August 2. Gieat rxciu rrrent "v»as c, >i=ctl in Greyuiouih on Saturday input by tl>c arrival of uewa of the striking of what is believed to be the mam leef in the Mount Pnpaioa (late Croesus) Gold .Mining Company's clnim. The contractors for driving thf Tunr.icl wera engaged in their work when they weie curpuscd at ni'ddav by striking a very strong flow of v.-atPT. which rompelled tlicm to discontinue work for a brief period. On returning to the fare they had not >. orked mere tlian half an hour when thpy struck a fine sample of n'lar'z, which they drovo into for 8 ciist?nce of lf-ir> The size of the reef, unless very large, will likely be known by Monday night or Tuesday morning. The discovery is consider -d to W a uio»t 'lnportant, one, stone having b?eu struck in the lowei levpl tunnel, proving lhat the rich leaders obtained on the suiface a ome three years ago live down, and are now thought to be Luc the outcrops of a large "body of quartz at a lo>\er depth Experts affirm that the discovery shows that a quartz field, greater in magnitude than Inangahua, exists on the Paparoas A number of people left town to-day to re-peg out a number of leases the first thing oij Monday morning. PROCLAIMING THE HOKITIKA RIVER. WELLINGTON, July 31. A deputation fTorn Hokitika wmted on Sir J. G. Ward and the Hon. J. M'Gowan to-day and asked that the Hckitika River should be proclaimed a sludg-e channel, as while delayed a large company, with a CRpital of jEIOO,OOO, was being prevented from bringing in water to work the terrace at Back Creek, near Rimu. Ministers promised that -t-he matter should be brought before the Cabinet and that the question as-to whether settlers shonld be allowed to go to tho Compensation Court would be considered. MOUNT LYELL MINING AND RAILWAY COMPANY.

MELBOURNE, August 1. The Mount Lyell returns from June 26 to July 23 inclusive show that 24,251 tons of ore wers treated, a^p is. additional 8861 too* oft

purchased ores and fluxes, producing 571 tons of blister copper containing — copper, 563 tons, silver, 53,8310z; gold, 17910z. EXPORT OF GOLD. WELLINGTON, August 2. The gold exported last month totalled 47,0510z, valued at £184,594. The export for the seven months of the present year was 263,5520z, valued at £1,020,156, an increase of about 15,00C0z, vs!ued at £58,183, over the ngures for the corresponding period of last year. The export of silver last month was 34,256cz, valued £3426. LAKE VIEW CONSOLS. LONDON, August 3. The shareholders of Lake View Consols, Westrnlia, have agreed to the issue of 100,000 new shares to presc-iit shareholders at 255. THE REEYES'S PROPRIETARY COMPANY. (Frou Our Own ConKEsroNDEirr.) GHRISTCHURCH, August 3. Iv November last the Reeves's Propnetaiy Gold Dredging Company grirnted an option ever their claim for a period of nine months to Mr A. P. Harper. Pr or to hi<? departure for Eng'aud the sum of £200 was deposited by Mr Harper, which was to be forfeited if the purchase of the clfini on tho terms then set out was not completed. Mr Harper's proposals lor the pxurchase of the claim were recently leceived by the company, through Messrs Harcourt and Co., of Wellington, and were considered at a meeting of directors held to-day. Mr Harper's proposals were as follows: — " (1) An English syndicate will place a powerful dredge cm your claim at its own expense to test and work as they may desire, the actur.i working siot to exceed nine months. (2) The gold won by the dredge to be dovoied (») to the payment of working expenses; (b) thebalance thereafter to be divided between the syndicate and ycur company, in the proportion of four-fifths to them and one-fifth to you. (3) The dredge to be placed on the claim within 12 months of the acceptance of the offer (i.e., to commence work within that time). (4) If the returns are satisfactory a company to bo promoted by the English syndicate, with at least £35,000 working capital, the total nominal capital to be three t:mes the amount of the working capital. (5) £15,000 of the working capital to be reserved for New Zealand subscribers if they shoiild desire it, to be underwritten by them on the same terms aa tho?e of the underwriter in London. (6) The Reeve3's Proprietary Company to receive in shares or shares and cash 25s per share for each pbaro now issued by the company. This offer remains open till 31st August. 1902." The proposals also included the stipulation that the R-seves's Proprietary Company shall be al'owed to dredge with their present dredge until the property is taken over by the English company, and to retain all the gold won during that period. The above proposals mean Ihat the present shareholders iv the Reevee's Proprietary Company would receive for their present- interest £15,250 in a company of not l"as than £105.000 nominal capital. The directors, aft»r consider^ ing the proposals, decided, on behalf of the shareholders, to reject the effer. They decided, further, that Mr Hn.) pel's agents be notified thai the directors sre not inclined to depart in any way from their original offer to Mr Harper- The directors did not consider that Mr Harper's proposals were worth placing before the shaieho'ders. The option expires on September 5, 1902, and it is t've intention of the dnectors to take immediate steps after that date to secure a powerful dredjre, towards which they have at present £1000 cssh in hand.

ALPINE CONSOLS DREDGING COMPANY.

An extiaordinary general meeting of shareholders of the Alpino Consols Diedging Company was held on Wednesday pfiernooa. Mr H. L. Tapley presided, and about 12 shareholders were present.

The Chairman said that before proposing the leßolution on the notice he would like to direct the attention >jf shareholders to the condition of the company. When they met together in May last they were in an awKwaid corner, and it was left to the directors to confer wish tho trustees for the debenture-holders. Aa a reault cf that conference a circular was issued to all the shareholders, calling upon them to provide a levy which would enable the company to pay oil its liabilities. Unfortunately the levy was rot sufficiently responded to. The trustees said that something must be done at once in cider to protect the property, and that the best thing to do would be to re-form the company, giving all shareholders an opportunity of coming in. Accordingly a prospectus was iramed of a new company with 7500 shares at 10a, and plenty of time was given for aJI shniehclders \o come in. Unfortunately a few of the shareholders did not com: in. Since then the new company had got to work and had bottomed on good gold. There had beeu ceiUin references in the papers as to tho legality of the action of the directors of tne old company, but the people who nicde those statements were not conversant with the facts. The directors were in the hands of the debenture-holders— the. deed provided for that,— and the directors had to fall in with their views. It was a most uniorhu.ate thing, but the directors) had no optics. Mr Freeman said that he was given to understand that every doctor was a. deb'-iiture-holder, and could they act in the dual capacity ' He had bought in at a high figure, and had been leit completely in the dark.

The Chairman said that, speakirg for himsc'f, he was a shareholder in the old company, tu'.d for his 75 thaic^ he had r.ot got a penny.

Mr Freeman said that the shareholders o<

Ihe old company had a r if>k.t *° demand some* • thing for their money He believed in doing ' -what was right and 6quare with the old sharef holders. I The Chairman said that he thought he hatf j explained the position. The new company had paid the old company £ 2700, and had taken ovsj all the liabilities. Had the dredge been put tip for auctiou it would not have realised any* thing like that amount. Mr ■Winchester: Providing the directors did

not know r!1 about tlie new company. The Chairman Tney did not know. Mr Winchester : The rep eon the levy was nol responded to was because of the rider attached j stating that the ladder was not long enough, I that the claim had been silted up with » water- '• *pout — in short,, the report that the claim was

,Mr A. S. Adams said tjiat it was evident t tlis^t the sha.rekc3tler& who did not apply con-

s.'dered that the oJaiin was no good. Speaking I professionally, he could say that the debenture' I holders, on his i.dvice, had taken action. Tli« j river was high, and the dradge was costing j money and earning nothing. The trustees toi the debenture-holders were bound to tak< ection. They waited seven or eight months) and to have waited longer would have been ta jeopaidisa the property of the trustees. The directors took action m order to ensure the creditors of the company being paid. A Shareholder said that the directors had discouraged the shareholders from taking up shaxea in the new company. The Chairman said that it was an easy ma-tter to sling a, little mud. He held letter* from the dredgemaster stating that the claim was silting np owing to the waterspout. Tha directors could not have done more than they had done, and they had acted honourably in tha interests of the shareholders. Mr Winchester esked why a meeting of tha shareholders had not been called to discuss tho • Jfc Kiodes -said that two years ago the company had borrowed from him £1500 at 5 per cent., and that was not sufficient; and t£cn the shareholders lent to" themselves at 20 per cent., and each shareholder had a right |o a proportion of the debentures. The company got stranded, aud the directors made themselves personally responsible for £150. Wages went- ox> for three months, and with an expense

j of £10 or £12 a week going on the trustees had to step in, or they would have been personally responsible for all the debt 9. A, meeting waa called, and tho matter laid befoie the .company, and a levy proposed for £600, and the shareholders were tord that if the levy wa( not respo :ded to reconstruction must comet Even then tha response was so poor that they had to get the engineers, tradesmen, and theii solicitors to tckc out their debts in shares, and with a great struggle the company waa started. They said, '" We'll get the dredge started," and then they bottomed. " Every* shareholder knew they were on payable gold before the list waa closed, and everything was done fairly and above board. After further discussion, the Chairman ptoposcd, and Mr M'Cracken seconded, the following resolution: — "That it has been proveel to the satisfaction of this meeting that tha company cannot, by reason of its liabilities, continue its business, and that it is advieabla to wind up the same, and accordingly that tha company be wound up voluntarily, mid that a liquidator for the purpose of suoh winding up be appointed." Mr Ritchie said thai there was no use in further recrimination. No one was to Kama except tho shareholders -who had failed to pay tlie 2s levy, and the reason they did not da so was because they could not afford it. , The resolution was carried with <pc or twa dissentients. Mr Shaw jaid that the directors had sold the dredge to themselves. The Chairman eaid that Mr Shaw had no right to say that. Ko one deplored more th»n he that al l the shareholders had not been abla

to take advantage of the opportunity offered them.

Mr L. G. Reeves was appointed liquidaloi aud the meeting terminated.

NEW ALPINE CONSOLS DREDGING

COMPA.N *.

A meeting of the New Alpine Consols Dredg* ing Company was subsequently held, Mr J« Rhodes presiding. Messrs J. Rhodes, H. Ij» Tupley, H. Stokes, J, Solomon, and W. Pore* man were elected directors of the new company, and Messrs Ganow and Stewart auditor hi